Yet another situation to watch as we head toward the May 15th "Third Intifada". This could be bad. It was just a few weeks ago we thought my husband, who is active duty Navy, would not be getting paid, and I remember how upset I was with our government for not setting their political agendas aside and putting those whose livelihoods depend on their paychecks from the government ahead of politics for once. The Palestinians already hate Israel with a passion . . . this is more fuel to feed the fire.

The Palestinian Authority said on Monday it had not been able to pay salaries for the first time since 2007 because of Israel's decision to halt the transfer of funds it collects on its behalf.

Palestinian Prime Minister Salam Fayyad said Israel's decision, a move driven by Israeli concern over a Palestinian unity deal including Hamas, had put the Ramallah-based government in a "very difficult" financial position.

Fayyad said the PA had paid salaries to its 150,000 employees promptly on the 5th day of every month since mid-2007. "We are now on the 9th and we have not been able to meet this obligation," he said.

Israel recently blocked the transfer of 105 million dollars in customs duties and other levies it collects on behalf of the Palestinian Authority, following a deal to reunite the two rival Palestinian groups Hamas and Fatah.

Palestinians see reconciliation between the secular Fatah and Islamist Hamas as crucial for their drive for an independent state in Gaza and the West Bank. The two groups had been at odds since a brief civil war in 2007, after which Hamas seized control in Gaza, and Fatah was left to administer the West Bank.

Israel has condemned the unity pact as a "tremendous blow to peace", with Netanyahu refusing to negotiate with Hamas, whose charter calls for Israel's destruction.

MelAnne

May 9th, 2011, 09:52 AM

I should have checked the other Israeli news sources. YNet has a much better article with more info.

The Palestinian Authority said on Monday it had not been able to pay salaries for the first time since 2007 because of Israel's decision to halt the transfer of funds it collects on its behalf.

Prime Minister Salam Fayyad said Israel's decision, a move driven by Israeli concern over a Palestinian unity deal including Hamas, had put the Ramallah-based government in a "very difficult" financial position.

Fayyad said the PA had paid salaries to its 150,000 employees promptly on the fifth day of every month since mid-2007. "We are now on the ninth and we have not been able to meet this obligation," he said.

The Palestinian prime minister said that the salaries would be paid as soon as Israel transferred the tax funds. He added that the PA had turned to donor countries and Arab states for help.

Prime Minister Benjamin Netanyahu's government decided on May 1 to halt the transfers which make up 70% of PA revenues, citing fear that the money would go to Hamas, a militant group hostile to Israel.

Finance Minister Yuval Steinitz addressed the decision again on Sunday. "I decided, immediately after the announcement on the Hamas-PA merger, to temporary halt the transfer of funds until we receive clarifications.

"This is also a warning that if a Hamas state is established, we won't be able to fund it as a government," he added.

Following Israel's decision, France said it would transfer the Palestinian government €10 million ($14 million) in aid funds.

Steinitz cancelled the latest routine handover of some NIS 300 million (approx. $88 million) in customs funds and other levies collected on behalf of the Palestinians, as stipulated in the Oslo Accords.